Message Mer 26 Nov 2014 16:25


THE Konkola Copper Mines (KCM) owes various debtors in excess of US$1.5 billion as of August 2014, Parliament has heard.
Of the US$1.5 billion, US$ 600 million was debt and liability related to the short term while the remaining $900 million were long term debt and liabilities.
Mines, Energy and Water Development Deputy Minister Richard Musukwa disclosed the KCM debt in Parliament yesterday.
Mr Musukwa said the debt the company owes would be cleared through bank long term loans through a repayment schedule based on what KCM made according to the terms of agreement.
He said the company would also pay dividend liabilities and price participation as soon as the cash flow of the mining giant improves.
“Other short and long term liabilities will be cleared as and when they fall due,” Mr Musukwa said.
Mr Musukwa was responding to a question raised by Patriotic Front (PF) Chipili MP Davis Mwila who wanted to know the total indebtedness of KCM as of August 2014.
He also wanted to know when the indebtedness would be cleared and why the mine had not been put under liquidation.
Mr Musukwa explained that KCM had not been put under liquidation because the business was not in a threatening situation to require such a measure.
The debts of KCM were a long legacy issue that Government and the company had been dealing with through several talks on its survival.
He assured the House, the country and KCM employees that Government was watching closely the situation at KCM
Meanwhile, Speaker of the National Assembly Patrick Matibini has ordered Information and Broadcasting Services Minister to explain what transpired at the Zambia National Broadcasting Corporation (ZNBC) concerning harassment of Journalists by a Cabinet minister and PF officials.